Complete Story
11/21/2025
ORCA Supports Private Retainage in Ohio House
The Ohio Roofing Contractors offered testimony in the Ohio House Small Business Committee this week in support of the newly introduced Private Retainage Reform bill, House Bill 568. The testimony included the following
Under current law, there is no statutory limit on the amount of retainage an owner may withhold from a contractor or subcontractor on private construction projects. HB 568 addresses this problem by prohibiting construction contracts or subcontracts for private projects valued at more than $1 million from including provisions that require or permit retainage in excess of 5% of the contract or subcontract’s value.
For ORCA members, this change is significant. Excessive retainage creates substantial cash-flow challenges for contractors, subcontractors, and material suppliers, many of whom have fully completed their work but must wait months for the release of funds. These delays strain payroll, hinder the purchase of materials, and limit the ability to invest in workforce training and safety.
Capping retainage at 5% strikes an appropriate balance. It preserves an owner’s ability to ensure satisfactory completion while also promoting fair and timely payment practices. By creating a uniform standard, HB 568 will strengthen Ohio’s construction industry, support small businesses, and reduce the financial risk placed on contractors who have already fulfilled their obligations.
For these reasons, the Ohio Roofing Contractors Association respectfully urges your support for HB 568.
The chair does not anticipate further committee meetings this year based on the overall general legislative schedule. They will now break for a district work period until the new year.
ORCA was joined in their support by The Superior Group; The Ohio Chamber of Commerce; The Associated General Contractors of Ohio; The Construction Employers Association; The Ohio Business Roundtable; The National Electrical Contractors Association, Central Ohio Chapter and Greater Cleveland & North Central Ohio Chapter; and The Mechanical Contractors Association of Ohio
If you would like additional information or have questions, please contact Valerie Pope at the ORCA office: 888-294-0084.